IN this week’s SME Focus we hear from an asbestos removal specialist who feels his experience proves it’s never too late to start your own business.
Name:
James Henderson.
Age:
62.
What is your business called?
Gowrie Contracts Ltd.
Where is it based?
Dundee.
What does it produce, what services does it offer?
Asbestos Removal/Demolition/Strip outs.
Whom does it sell to?
Local Authorities, Public Bodies, Main Contractors in Construction Industry.
What is its turnover?
£2,551,000.
How many employees?
32 plus 4 apprentices.
When was it formed?
October 2006.
Why did you take the plunge?
I have always been a frustrated entrepreneur but since leaving college I was constantly in employment and, with a family to support, I decided it was best to have a decent steady income. When the kids went their own way and started families of their own it was a good time to strike out and fulfil a long held ambition.
What were you doing before you took the plunge?
I’d predominantly been in the construction industry and it was when I was working for a demolition company that I saw an opportunity to start an asbestos removal service. Back then it was seen as a poor relation in the demolition business, but with increasing regulation on the way I could see there was a need for a dedicated specialist operator in the area.
How did you raise start-up funding?
My son and I started in a small way with three asbestos removal operatives. We were largely self-funded, with some assistance from the bank. We began by hiring equipment rather than buying it. A local demolition contractor bought into our vision of where the industry was heading but did not want the complication of starting an asbestos division of their own and committed to give us all their asbestos removal work. They had the confidence to trust us to work hand in hand with them and I’m pleased to say we are still working together to this day.
What was your biggest break?
Winning a Dundee City Council contract worth £350,000 for the removal of contaminated land from a former school site in the city in those early days. As well as being a lucrative contract, ito showed we could compete with the larger companies in the field, and allowed us to demonstrate a level of competence to the council, for whom we have worked on a regular basis throughout the years.
More recently we have greatly increased our client base through qualifying for a place with Scotland Excel which is the Centre of Procurement Expertise for the local government sector in Scotland. It means we are 1 of 8 contractors that Scottish local authorities must use for asbestos removal contracts.
We gradually became involved in the demolition industry and have been successful to the extent that, in conjunction with Dundee City Council, we became the first demolition company to receive an award for ‘Excellence in Construction in recognition of excellence in the provision of Health, Safety & Welfare’ by the Chartered Institute of Building.
What was your worst moment?
We first started trading in Feb 2007 and within 12 months we were hit by the biggest recession in recent history. All sectors were hit badly but none more than the construction industry. However, we weathered the storm and managed to increase our turnover every year. Our first year’s turnover was £120,000.
What do you most enjoy about running the business?
The obvious answer is to say I have the freedom to do what I like, but the reality is I probably have less time off than when I was employed. I love what I do and Monday morning blues are a thing of the past. I take real satisfaction from seeing a job through from winning at tender stage to successful completion and a job well done. We’ve built up a family friendly atmosphere benefit from a small turnover in staff. In fact the three original employees are still with us almost ten years on. It is also satisfying that around 80 per cent of our workforce, who were unemployed before joining us, with proper training and support have gone on to become valued members of a successful company with a structured career path.
What do you least enjoy?
It feels many companies have used the recession to beat down tender prices and I don’t enjoy the use of 60 and even 90 day payment terms for sub contractors. We all have our quiet times and having to let some people go, however, is the worst feeling.
What is your biggest bugbear? Slow payment from contractors. This is an industry where small companies can go under despite having healthy order books.
What are your ambitions for the firm?
We are currently on the acquisition trail with the help of our business advisors at Henderson Loggie, the firm of accountants we have worked with us since we set out. They understand our industry and are on the lookout for asbestos removal companies that will be a good fit with our ethos as we expand.
The demolition side of the business is restricted geographically as it doesn’t make sense for us to transport 35 tons of machinery the length and breadth of the country, but we have made some incursions into England with our Asbestos Removal arm, and recently won our first job in Wales.
This year we were named ‘Tayside and Fife Small Business of the Year’ at a business awards ceremony at the Fairmont Hotel in St Andrews, so the next step would be to win Business of the Year.
What are your five top priorities?
To make Gowrie Contracts the best company it can be.
To invest in state of the art plant and equipment.
To expand our apprentice scheme and to represent the industry at school careers presentations. We made our first presentation recently and it was greatly appreciated by the school staff.
We have a number of clients who view us as a first stop and we aim to establish preferred contractor status with more contractors.
To work with the National Demolition Training Group to have a fully carded workforce through our training matrix.
What could the Westminster and/or Scottish governments do that would help?
Stronger legislation to ensure the prompt payment of sub-contractors.
What was the most valuable lesson that you learned?
It is never too late to start your own business. I was 53 years of age when I started this company and if you believe in your idea and are fully committed then anything is possible. I have also learned that it is important to understand that things won’t always go smoothly and to be prepared for that.
How do you relax?
When you run your own business you can never switch off entirely, but currently I am learning Italian with thoughts on a still long off retirement.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here